Chapter 18 - Accounting for the medical office. Accounting is another of the administrative competences in the medical assisting career. A person in this career may be required to take on many duties in the medical office that would typically be done by an office manager. This chapter describes the key areas of accounting and bookkeeping that may be encountered. | Chapter 18 PowerPoint® to accompany Second Edition Ramutkowski Booth Pugh Thompson Whicker Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Medical Assisting Chapter 18 Objectives 18-1 Describe traditional bookkeeping system, including single entry and double entry. 18-2 Define a pegboard system. 18-3 Explain the benefits of performing bookkeeping tasks on the computer. 18-4 List banking tasks in a medical office. 18-5 Describe the logistics of accepting, endorsing, and depositing checks from patients and insurance companies. 18-6 Reconcile the office’s bank statements. 18-7 Give several examples of disbursements. Accounting for the Medical Office Objectives 18-8 Record disbursements in a disbursement journal. 18-9 Set up and maintain a petty cash fund. 18-10 Create employee payroll information sheets. 18-11 Compute an employee’s gross earnings, total deductions, and net earnings. 18-12 Prepare an employee earnings record and | Chapter 18 PowerPoint® to accompany Second Edition Ramutkowski Booth Pugh Thompson Whicker Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Medical Assisting Chapter 18 Objectives 18-1 Describe traditional bookkeeping system, including single entry and double entry. 18-2 Define a pegboard system. 18-3 Explain the benefits of performing bookkeeping tasks on the computer. 18-4 List banking tasks in a medical office. 18-5 Describe the logistics of accepting, endorsing, and depositing checks from patients and insurance companies. 18-6 Reconcile the office’s bank statements. 18-7 Give several examples of disbursements. Accounting for the Medical Office Objectives 18-8 Record disbursements in a disbursement journal. 18-9 Set up and maintain a petty cash fund. 18-10 Create employee payroll information sheets. 18-11 Compute an employee’s gross earnings, total deductions, and net earnings. 18-12 Prepare an employee earnings record and payroll register. 18-13 Set up the practice’s tax liability accounts. 18-14 Complete federal, state, and local tax forms. 18-15 Submit employment taxes to government agencies. 18-16 Describe the basic parts of an employment contract. Accounting for the Medical Office Introduction Bookkeeping Systematic record of business transactions. You need an understanding of basic accounting system and certain financial management skills. A medical practice is a business, its income must exceed its expenses! Establishing Procedures Maintain the practice’s bookkeeping. Be consistent. Use check marks as you work to avoid errors. Write clearly with same type of pen. Double check your work frequently. Bookkeeping Systems Single entry system Daily log Patient ledger cards Checkbook registers Payroll records Petty cash Double-entry Assets – goods or services Liabilities – amounts owed by the practice Both sides of the accounting equation must balance Assets = liabilities + owner equity
